Whingeing retail billionaires and the 10% GST

[Don McKenzie]

Whingeing retail billionaires and the 10% GST

I must have taken an extra dose of grumpy old man pills this morning, as I just read:
http://www.smh.com.au/business/fury-at-online-gst-loophole-20101219-191zt.html

Fury at online GST loophole
Mathew Murphy
December 20, 2010

RETAIL heavyweights have attacked a government inquiry into the industry as a further sign of inaction, saying GST and
duty loopholes favouring overseas retailers are ''lunacy''.

The retail billionaires Solomon Lew and Gerry Harvey yesterday revealed they are considering mounting a campaign against
the government over what they claim is an uneven playing field. Under existing tax arrangements, overseas retailers are
able to offer purchases under $1000 online without attaching GST.

========================

Well, in my "Fury" of reading what these billionaires are complaining about, I decided to shoot off a letter to the
editor of the herald-sun Melbourne this morning. I do ramble on about a few loosely linked subjects that have been
frustrating me recently, but my anger is directed mainly at retail billionaire Gerry Harvey, and this 10% GST.

============
To heraldsun.com.au

Gerry Harvey (Harvey Norman) says he is loosing money because people are shopping on line from overseas, in order to
save the 10% GST. Wrong Gerry. It is not about the 10%. It is about greed. Why pay sometimes two to three times the
price here, when you can get it from the US or China, for a third of the price. Retailers simply have to be more
competitive.

And Australia Post is going broke because ordinary mail is being overtaken by email. What about all the packages that
are being delivered from overseas that Gerry Harvey keeps telling us about. You can't have it both ways.

And why do I have to line up in a queue to post a yellow bag that won't fit into the toy timber yellow box out the front
of the Post Office. I feel like getting at it with a small carpenters saw, and cutting the slot out so that it will fit
more than just a letter.

On the 22nd of November, Australia Post hit us with a $9 security surcharge for packages to the US that weight over 453
grams. When asked what they do for this fee, they won't tell us, because it's a secret.

Don McKenzie
Tullamarine.

======================



--
Don McKenzie

Site Map: http://www.dontronics.com/sitemap
E-Mail Contact Page: http://www.dontronics.com/email
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These products will reduce in price by 5% every month:
http://www.dontronics-shop.com/minus-5-every-month.html
http://www.dontronics-shop.com/ics.html

Bare Proto PCB for PIC or AVR projects?
"I'd buy that for a Dollar!".

 

[SG1]

Whingeing retail billionaires and the 10% GST

I must have taken an extra dose of grumpy old man pills this morning, as I
just read:
http://www.smh.com.au/business/fury-at-online-gst-loophole-20101219-191zt.html

Fury at online GST loophole
Mathew Murphy
December 20, 2010

RETAIL heavyweights have attacked a government inquiry into the industry
as a further sign of inaction, saying GST and duty loopholes favouring
overseas retailers are ''lunacy''.

The retail billionaires Solomon Lew and Gerry Harvey yesterday revealed
they are considering mounting a campaign against the government over what
they claim is an uneven playing field. Under existing tax arrangements,
overseas retailers are able to offer purchases under $1000 online without
attaching GST.

========================

Well, in my "Fury" of reading what these billionaires are complaining
about, I decided to shoot off a letter to the editor of the herald-sun
Melbourne this morning. I do ramble on about a few loosely linked subjects
that have been frustrating me recently, but my anger is directed mainly at
retail billionaire Gerry Harvey, and this 10% GST.

============
To heraldsun.com.au

Gerry Harvey (Harvey Norman) says he is loosing money because people are
shopping on line from overseas, in order to save the 10% GST. Wrong Gerry.
It is not about the 10%. It is about greed. Why pay sometimes two to three
times the price here, when you can get it from the US or China, for a
third of the price. Retailers simply have to be more competitive.

And Australia Post is going broke because ordinary mail is being overtaken
by email. What about all the packages that are being delivered from
overseas that Gerry Harvey keeps telling us about. You can't have it both
ways.

Check with AP as to wether they get paid for those os packages. You may get
a suprise??

 

[Phil Allison]

"SG1"

Check with AP as to wether they get paid for those os packages. You may
get a suprise??

** You suggesting there is a bata system going on with the worlds mail
services ?


..... Phil

 

[Trevor Wilson]

Whingeing retail billionaires and the 10% GST

I must have taken an extra dose of grumpy old man pills this morning,
as I just read:
http://www.smh.com.au/business/fury-at-online-gst-loophole-20101219-191zt.html

Fury at online GST loophole
Mathew Murphy
December 20, 2010

RETAIL heavyweights have attacked a government inquiry into the
industry as a further sign of inaction, saying GST and duty loopholes
favouring overseas retailers are ''lunacy''.
The retail billionaires Solomon Lew and Gerry Harvey yesterday
revealed they are considering mounting a campaign against the
government over what they claim is an uneven playing field. Under
existing tax arrangements, overseas retailers are able to offer
purchases under $1000 online without attaching GST.
========================

Well, in my "Fury" of reading what these billionaires are complaining
about, I decided to shoot off a letter to the editor of the
herald-sun Melbourne this morning. I do ramble on about a few loosely
linked subjects that have been frustrating me recently, but my anger
is directed mainly at retail billionaire Gerry Harvey, and this 10%
GST.
============
To heraldsun.com.au

Gerry Harvey (Harvey Norman) says he is loosing money because people
are shopping on line from overseas, in order to save the 10% GST.
Wrong Gerry. It is not about the 10%. It is about greed. Why pay
sometimes two to three times the price here, when you can get it from
the US or China, for a third of the price. Retailers simply have to
be more competitive.
And Australia Post is going broke because ordinary mail is being
overtaken by email. What about all the packages that are being
delivered from overseas that Gerry Harvey keeps telling us about. You
can't have it both ways.
And why do I have to line up in a queue to post a yellow bag that
won't fit into the toy timber yellow box out the front of the Post
Office. I feel like getting at it with a small carpenters saw, and
cutting the slot out so that it will fit more than just a letter.
On the 22nd of November, Australia Post hit us with a $9 security
surcharge for packages to the US that weight over 453 grams. When
asked what they do for this fee, they won't tell us, because it's a
secret.
Don McKenzie
Tullamarine.

======================

**Whilst I applaud the sentiment, I doubt that the problem lies only with
retailers. Importers of certain high profile brands are probably making very
large profits.

 

[jg]

Whingeing retail billionaires and the 10% GST

I must have taken an extra dose of grumpy old man pills this morning, as
I just read:
http://www.smh.com.au/business/fury-at-online-gst-loophole-20101219-191zt.html


Fury at online GST loophole
Mathew Murphy
December 20, 2010

RETAIL heavyweights have attacked a government inquiry into the industry
as a further sign of inaction, saying GST and duty loopholes favouring
overseas retailers are ''lunacy''.

The retail billionaires Solomon Lew and Gerry Harvey yesterday revealed
they are considering mounting a campaign against the government over
what they claim is an uneven playing field. Under existing tax
arrangements, overseas retailers are able to offer purchases under $1000
online without attaching GST.

========================

Well, in my "Fury" of reading what these billionaires are complaining
about, I decided to shoot off a letter to the editor of the herald-sun
Melbourne this morning. I do ramble on about a few loosely linked
subjects that have been frustrating me recently, but my anger is
directed mainly at retail billionaire Gerry Harvey, and this 10% GST.

============
To heraldsun.com.au

Gerry Harvey (Harvey Norman) says he is loosing money because people are
shopping on line from overseas, in order to save the 10% GST. Wrong
Gerry. It is not about the 10%. It is about greed. Why pay sometimes two
to three times the price here, when you can get it from the US or China,
for a third of the price. Retailers simply have to be more competitive.

And Australia Post is going broke because ordinary mail is being
overtaken by email. What about all the packages that are being delivered
from overseas that Gerry Harvey keeps telling us about. You can't have
it both ways.

And why do I have to line up in a queue to post a yellow bag that won't
fit into the toy timber yellow box out the front of the Post Office. I
feel like getting at it with a small carpenters saw, and cutting the
slot out so that it will fit more than just a letter.

On the 22nd of November, Australia Post hit us with a $9 security
surcharge for packages to the US that weight over 453 grams. When asked
what they do for this fee, they won't tell us, because it's a secret.

Don McKenzie
Tullamarine.

======================

Online shops have a number of trading advantages, absence of GST is just
one more for some. People who want a more competitive Australia can't
have it both ways.

 

[nah]

Hi all,
I've read Don's post and the replies upto this post and have the following
thoughts.

I understand where the retailers are coming from, they're saying that their
prices are going to be at least 10% higher as compared to personal imports
below $1k being gst free.

I understand also that local prices will be higher for the following
reasons: A retailer is just that, more often than not they are not the
manufacturer or importer so there may be 2 to 3 steps in the chain each
adding their costs and profit margin, and, part of those costs associated
with the requirements of state and federal law (ie the trade practices act
etc) ie warranty.

Now I would sympathise more with the retailers if they supported local
manufacturing even if their prices for doing that were higher. It's a two
way street, they want to maximise profits for shareholders but seems to
relogate their commitment to community and code of conduct or ethics to the
background. Just look at the amcor / qantas etc cartels - certainly no
ethics or commitment to community there.

The other side of the coin of course is that personal imports are a risk -
there is no local warranty and for items under $1k it may be cost
prohibitive to return to place of purchase to honour any warranty they may
actually offer. Most local distributors won't touch grey imports for
warranty or even for repair quotes. Depending on your payment or shipping
methods, there is also the possibility of doing your cash if the items don't
turn up.

Again - I'd sympathise more with the retailrs if they were competing using
local manufactured product - but who, in AUS, makes LCD or plasma TVs,
digital cameras, hard drives etc etc etc. And who purchases white goods or
furniture from OS - no competition there for the retailers.

If the gov't were to eliminate or reduce the gst thresholds for imports
(which would be impractical to implement) I see this as another opportunity
for the cartel mentaility, prices would no doubt go up rather than stay as
before. The only way this could even be considered would be to give the accc
some teeth.


Having said all that here's a whinge of my own.
I find that the AUS gov't tends to favour international agreements over what
is beneficial for AUS. Take for example the pv solar rebate programmes. I've
yet to see one in AUS have any local content requirement. As a result many
of the installers use imported panels where we have at least 2 manufactures
in Australia. The USA, Germany , Sweden and others all have local content
requirements for their pv solar pogrammes - but AUS, no we seem to believe
that FTAs are far more important so the panels, inverters etc all come in
from OS. This was true for most if not all the GFC incentive programmes too.

Greg

Whingeing retail billionaires and the 10% GST

I must have taken an extra dose of grumpy old man pills this morning, as I
just read:
http://www.smh.com.au/business/fury-at-online-gst-loophole-20101219-191zt.html

Fury at online GST loophole
Mathew Murphy
December 20, 2010

SNIP

 

[Dr Sir John Howard, AC, WSCMoF]

Online shops have a number of trading advantages, absence of GST is just one
more for some.

Depends on where they are. Or didn't you know that?

--

- KRudd at his finest.

"The Labour Party is corrupt beyond redemption!"
- Labour hasbeen Mark Latham in a moment of honest clarity.

"This is the recession we had to have!"
- Paul Keating explaining why he gave Australia another Labour recession.

"Silly old bugger!"
- Well known ACTU pisspot and sometime Labour prime minister Bob Hawke
responding to a pensioner who dared ask for more.

"By 1990, no child will live in poverty"
- Bob Hawke again, desperate to win another election.

"A billion trees ..."
- Borke, pissed as a newt again.

"Well may we say 'God save the Queen' because nothing will save the governor
general!"
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appointee for Governor General John Kerr.

"SHUT THE **** UP YOU DUMB ****!"
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"I don't care what you fuckers think!"
- KRudd the KRude Rat at his finest again.

"We'll just change it all when we get in."
- Garrett the carrott

 

[jg]

Depends on where they are. Or didn't you know that?

That's why I said 'for some'.

 

[son of a bitch]

Whingeing retail billionaires and the 10% GST

I must have taken an extra dose of grumpy old man pills this morning, as
I just read:
http://www.smh.com.au/business/fury-at-online-gst-loophole-20101219-191zt.html


Fury at online GST loophole
Mathew Murphy
December 20, 2010

RETAIL heavyweights have attacked a government inquiry into the industry
as a further sign of inaction, saying GST and duty loopholes favouring
overseas retailers are ''lunacy''.

The retail billionaires Solomon Lew and Gerry Harvey yesterday revealed
they are considering mounting a campaign against the government over
what they claim is an uneven playing field. Under existing tax
arrangements, overseas retailers are able to offer purchases under $1000
online without attaching GST.

========================

Well, in my "Fury" of reading what these billionaires are complaining
about, I decided to shoot off a letter to the editor of the herald-sun
Melbourne this morning. I do ramble on about a few loosely linked
subjects that have been frustrating me recently, but my anger is
directed mainly at retail billionaire Gerry Harvey, and this 10% GST.

============
To heraldsun.com.au

Gerry Harvey (Harvey Norman) says he is loosing money because people are
shopping on line from overseas, in order to save the 10% GST. Wrong
Gerry. It is not about the 10%. It is about greed. Why pay sometimes two
to three times the price here, when you can get it from the US or China,
for a third of the price. Retailers simply have to be more competitive.

And Australia Post is going broke because ordinary mail is being
overtaken by email. What about all the packages that are being delivered
from overseas that Gerry Harvey keeps telling us about. You can't have
it both ways.

And why do I have to line up in a queue to post a yellow bag that won't
fit into the toy timber yellow box out the front of the Post Office. I
feel like getting at it with a small carpenters saw, and cutting the
slot out so that it will fit more than just a letter.

On the 22nd of November, Australia Post hit us with a $9 security
surcharge for packages to the US that weight over 453 grams. When asked
what they do for this fee, they won't tell us, because it's a secret.

Don McKenzie
Tullamarine.

======================

These guys must really be getting desperate. I don't think the overseas
online shop sales would be that large anyway.

How many times has somebody said: hay, I bought a $1,000 PC or TV from a
online shop in Hong Kong and saved a shit load ?

 

[Clifford Heath]

And Australia Post is going broke

Try getting your facts straight before whinging yourself.
AP is making handsome profits from their hundreds of business
lines.

 

[Don McKenzie]

Try getting your facts straight before whinging yourself.
AP is making handsome profits from their hundreds of business
lines.

Sorry Clifford, I promise I'll try and be more accurate in future.
(I'll just slap myself around a little bit here)

They claim they are loosing money on their letter posting section, and will be closing post offices after Christmas:
http://www.dailytelegraph.com.au/bu...op-postal-losses/story-e6frez7r-1225973661545

Is that better?

It will mean longer queues for any transaction you want to do in a post office, but yes, they will still be making a profit.

==============

And on the end of the article I referred to above:
"The company (APO) has taken steps to boost parcel delivery by partnering eBay to simplify the packing and posting of
items. Other freight companies have also experienced a significant increase in the number of parcels coming into
Australia in the past few months."

So, who is profiting from the extra packages coming into the country? They don't do it for love, do they?

Cheers Don...

=============

--
Don McKenzie

Site Map: http://www.dontronics.com/sitemap
E-Mail Contact Page: http://www.dontronics.com/email
Web Camera Page: http://www.dontronics.com/webcam
No More Damn Spam: http://www.dontronics.com/spam

These products will reduce in price by 5% every month:
http://www.dontronics-shop.com/minus-5-every-month.html
http://www.dontronics-shop.com/ics.html

Bare Proto PCB for PIC or AVR projects?
"I'd buy that for a Dollar!".

 

[Clifford Heath]

They claim they are loosing money on their letter posting section, and
Is that better?

Yes. That doesn't mean they actually *are* losing money though.
It could just be a play to get postage rates increased. Impossible
to know.

In general, I'm supportive of your main gripe. Large retailers
have massive economies of scale wrt transport compared to individual
orders, but that has never been enough - they've always been happy
to rape both the Australian populace and foreign producers. Especially
the clothing industry, which has markups of up to 100x.

If Internet ordering forces them to derive their profits from their
actual operations, instead of from their ongoing abuse of market power,
that's an excellent thing in my book. Free trade working correctly.

After these excesses start to be equalised, they might have a point
about GST exemption for private imports (although the economies
mentioned, and the convenience of local display and backup, should
be enough for them to still run at handsome margins). Until then
however, definitely not.

Clifford Heath.

 

[Phil Allison]

"me here"

OK this is an example regarding JayCar.

The 12 volt 20 odd watt small two pin halogen bulb died in the desk
lamp.

Jaycar price about $6 (from 2010 catalogue)

Ebay price for TEN of the same (Philips brand) $9 delivered.

So Ebay price is 90 cents for something Jaycar sell for $6.

Flamin hell, is that some sort of mark up or what?

** Be dead easy for Gary Johnston of Jaycar to show with a ** proper costing
** that at $6 a piece - his business is actually LOSING money on each
such lamp sold through a retail store.



..... Phil

 

[me here]

Nothing to stop Harvey norman and co from doing the same.

Why would they want to when they can charge like wounded bulls.

OK this is an example regarding JayCar.

The 12 volt 20 odd watt small two pin halogen bulb died in the desk
lamp.

Jaycar price about $6 (from 2010 catalogue)

Ebay price for TEN of the same (Philips brand) $9 delivered.

So Ebay price is 90 cents for something Jaycar sell for $6.

Flamin hell, is that some sort of mark up or what?

And they recon 10% GST is going to make a difference.

Pure greeeeeed Harvey.

--

 

[Rod Speed]

I don't blame you. I'm also sick of how these people seem to
have voice with government, and we have no real representation.

In fact the minister has said that they are unlikely to change the $1K exemption for GST.

One probably with Gerry and co, (and for that matter the rotting
dinosaur called the "music industry") is that they don't seem to
realise that it is a different world now, and while they can try to
force things to work their way, they won't change things either by
taxes, rules, internet censorship and so on. Even the Soviets
couldn't keep out western products or music if people really wanted
them.

They have to provide value for money, or close their doors.
If they don't provide it, it will be all over the net in a short
time, as it should be and people will act accordingly.

 

[Rod Speed]

kreed wrote

If you have large companies pushing, they typically get what they want over time.

Bet they dont on this issue.

And they didnt with the mining super profits tax either.

And the banks in spades.

Nice theory.

Pity about the real world.

 

[B J Foster]

On the 22nd of November, Australia Post hit us with a $9 security
surcharge for packages to the US that weight over 453 grams. When asked
what they do for this fee, they won't tell us, because it's a secret.

US debt levels are no secret

 

[me here]

"me here"


** Be dead easy for Gary Johnston of Jaycar to show with a ** proper
costing ** that at $6 a piece - his business is actually LOSING
money on each such lamp sold through a retail store.



.... Phil

So you recon Jaycar should sell the item to the public at a price
greater than $6 so they can make a profit, for something that you can
buy for 90 cents elsewhere?

You have got to be kidding.



--

 

[Mr.T]

So you recon Jaycar should sell the item to the public at a price
greater than $6 so they can make a profit, for something that you can
buy for 90 cents elsewhere?

He can charge whatever he likes in a capitalist society, and the less he
sells, the greater his cost of stocking them. Since you can already buy a
pack of two in any Bunnings store for less than one at Jaycar, (and there's
bound to be cheaper than Bunnings even if you are not interested in buying
ten on the internet) I'd say it's simply up to the consumer to take their
business elsewhere and let Jaycar worry about their inventory costs and
sales. Let's face it, you should only buy items at Jaycar that you can't get
(conveniently) anywhere else.

MrT.

 

[atec77]

He can charge whatever he likes in a capitalist society, and the less he
sells, the greater his cost of stocking them. Since you can already buy a
pack of two in any Bunnings store for less than one at Jaycar, (and there's
bound to be cheaper than Bunnings even if you are not interested in buying
ten on the internet) I'd say it's simply up to the consumer to take their
business elsewhere and let Jaycar worry about their inventory costs and
sales. Let's face it, you should only buy items at Jaycar that you can't get
(conveniently) anywhere else.

MrT.

I find locally a lot of electrical goods are becoming compeditive ,
comparing ebay price to local available gets within a few % , as for
jaycar well there are plenty of places to buy if you plan and that's all
that's required to save a small fortune , try buying big rf power
mossfets online then compare to local supply